What if there were many stop losses that were triggered right before yours was triggered? I can imagine quite a few stop losses were sitting right above $600, not just yours.
I know that there would have been a lot of stop losses from traders taking small short trades following exactly the same text-book rules as I was, but before I start ranting about exchange insiders intentionally going after these stops, I shall state this:
If there that many stop losses that mine simply got bumped to the very back of the queue. Why wasn't anyone 'served' before me? Why does the ticker for Bitfinex report this:
02:00:58 602.29 0.1
02:00:56 600.3 1.00626
02:00:55 608.13 319.16802:00:24 600 255.37402:00:17 599.91 0.01
Why wasn't there any trades executed at 601, 602, 603 etc, where there were plenty Ask orders in wall along this small range? Amongst the double and single digit Ask orders that stood in the way of $600 and $608, was a 100 BTC order at $604.99. Why wasn't that triggered at the price which the trader who made the order set it at? I bet that insofar as it was a real order, that the trader only got paid his $604.99 minus fees. I wish had taken a screenshot of the Bitfinex order book just a second before the short squeeze happened to illustrate and emphasise the situation to those who skim read and come to conclusions like: "well, of course stop losses will be closed with market orders"
If Bitfinex's policy with gluts of stop loss orders is to simply sweep up all the coins in the Ask wall required to fill the stops in a certain range, and then sell those coins to Stop Orders at highest possible price before Ask Wall depth recommences, then i am afraid that this is a form of front running and insider trading.
Read back my latest reply.
I have a feeling that BFX may be grouping the stoploss orders for the ticker (I think i have seen this for margin calls aswel). So i think someone had there stoplosses filled in the 602-607 range. but it is simply not displayed in the ticker.